Select Committee on Constitutional Affairs Written Evidence


Further supplementary evidence submitted by the Legal Services Commission (LAR 230b)

FIGURES ON AVERAGE GAINS AND LOSSES FOR LEGAL AID SUPPLIERS UNDER THE NEW CIVIL AND FAMILY FEE SCHEMES

  AAP: actions against the police; COM: community care; CON: consumer; DEB: debt; EDU: education; EMP: employment; HOU: housing; MED: clinical negligence; MSC miscellaneous civil cases; PI: personal injury; PUB: public law; WB: welfare benefits; Public: public law family cases; Private: private law family cases, Immigr: immigration, Asyl: Asylum.

NATIONAL
CategoryProportion
Gaining
Average
Gain
Proportion

Losing

Average
Loss
AAP60.66%71.45% 39.34%-15.84%
COM58.03%109.89% 38.86%-22.34%
CON61.77%96.36% 35.89%-23.15%
DEB62.07%70.41% 36.61%-19.66%
EDU69.92%113.29% 26.69%-23.72%
EMP58.45%84.06% 39.16%-20.00%
HOU62.90%67.96% 35.88%-19.10%
MED64.02%82.81% 34.92%-19.33%
MSC57.18%52.33% 39.50%-21.56%
PI58.45%90.05% 39.73%-24.06%
PUB65.63%136.20% 31.77%-23.99%
WB55.19%72.77% 43.26%-18.42%
PUBLIC55.75%47.68% 42.82%-17.11%
PRIVATE52.61%31.27% 43.97%-12.74%
IMMIGRATION50.59%40.75% 38.95%-14.28%
ASYLUM68.00%38.62% 23.56%-6.16%
OVERALL52.74%30.92% 41.21%-11.77%

NON-LONDON
CategoryProportion
Gaining
Average
Gain
Proportion
Losing
Average
Loss
AAP64.64%73.58% 35.36%-16.21%
COM61.87%111.86% 35.97%-23.04%
CON64.93%96.55% 33.62%-22.41%
DEB65.36%71.68% 33.74%-19.10%
EDU74.67%118.94% 23.11%-23.51%
EMP62.44%85.74% 35.89%-21.38%
HOU68.92%70.13% 29.83%-19.43%
MED68.39%83.55% 30.46%-17.40%
MSC59.49%52.49% 37.57%-21.07%
PI60.63%91.42% 38.06%-24.02%
PUB70.97%150.13% 25.81%-25.58%
WB61.22%76.42% 37.26%-18.44%
PUBLIC56.37%48.09% 42.16%-17.26%
PRIVATE56.08%30.77% 40.82%-11.79%
IMMIGRATION59.52%52.29% 30.36%-14.08%
ASYLUM75.96%51.24% 16.39%-4.88%
OVERALL56.29%30.91% 37.79%-11.23%

LONDON
CategoryProportion
Gaining  
Average
Gain
Proportion
Losing
Average

Loss

AAP32.65%41.75% 67.35%-14.49%
COM48.15%103.39% 46.30%-20.95%
CON34.18%93.31% 55.70%-27.08%
DEB32.35%47.27% 62.50%-22.40%
EDU43.90%60.59% 46.34%-24.29%
EMP24.29%46.90% 67.14%-13.71%
HOU35.92%49.26% 63.03%-18.40%
MED13.33%38.86% 86.67%-27.24%
MSC27.84%47.84% 63.92%-25.22%
PI32.00%58.69% 60.00%-24.33%
PUB43.24%40.39% 56.76%-20.97%
WB28.00%36.80% 70.29%-18.40%
PUBLIC51.04%44.27% 47.77%-16.10%
PRIVATE29.58%37.48% 64.88%-16.72%
IMMIGRATION44.66%30.54% 44.66%-14.37%
ASYLUM62.55%28.12% 28.46%-6.67%
OVERALL35.42%31.01% 57.88%-13.50%

Proportion of Suppliers Gaining/Losing by This Amount
AAP COM CON DEB EDU EMP HOU MED MSC PI PUB WB PUBLIC PRIVATE IMMIGR ASYL OVERALL
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.52% 0.00% 0.00% 0.00% 0.00%
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.03% 0.00% 0.00% 0.00% 0.00%
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.03% 0.00% 0.00% 0.00% 0.00%
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.63% 0.00% 0.00% 0.00% 0.00%
0.00% 1.55% 1.43% 0.51% 0.75% 0.45% 0.39% 0.53% 1.36% 0.61% 2.60% 1.04% 0.42% 0.02% 0.00% 0.00% 0.00%
0.00% 2.07% 2.08% 1.32% 2.26% 2.39% 1.54% 0.53% 1.89% 3.35% 2.60% 1.66% 1.12% 1.25% 0.24% 0.00% 0.99%
1.02% 1.04% 2.60% 2.49% 1.50% 2.69% 2.05% 1.59% 2.95% 3.81% 1.56% 1.66% 1.96% 1.88% 1.66% 0.00% 1.47%
5.08% 4.66% 5.07% 2.93% 4.89% 4.33% 3.47% 3.17% 4.53% 5.94% 2.60% 3.22% 3.67% 2.06% 2.85% 0.00% 1.53%
6.35% 11.40% 6.76% 7.92% 4.51% 5.53% 4.81% 8.47% 6.19% 6.70% 3.13% 6.22% 4.54% 3.54% 5.23% 0.67% 2.85%
11.93% 6.74% 8.19% 10.12% 6.39% 9.87% 12.13% 10.05% 10.35% 9.28% 10.94% 14.94% 8.70% 9.81% 11.88% 4.67% 9.78%
9.90% 7.77% 4.03% 6.53% 3.76% 7.03% 6.55% 5.82% 5.51% 4.57% 5.73% 8.20% 8.07% 10.68% 6.18% 5.56% 9.71%
0.51% 1.04% 0.91% 0.73% 1.13% 0.60% 1.16% 1.06% 1.51% 1.52% 0.00% 2.07% 2.34% 2.81% 1.43% 1.56% 2.74%
0.51% 0.52% 1.17% 0.95% 0.75% 2.39% 0.71% 0.53% 1.51% 0.76% 1.04% 1.45% 2.24% 2.77% 1.66% 2.67% 2.89%
1.52% 1.04% 1.43% 0.81% 0.00% 1.49% 0.96% 2.12% 2.11% 1.07% 0.00% 0.93% 2.55% 2.67% 1.90% 0.89% 2.79%
1.27% 0.00% 1.30% 0.88% 0.38% 1.35% 1.16% 1.06% 0.91% 1.37% 1.04% 0.83% 2.24% 3.15% 1.19% 2.00% 2.85%
1.27% 4.15% 3.25% 2.71% 3.76% 3.44% 2.18% 1.06% 4.00% 2.59% 3.13% 2.59% 5.20% 6.75% 15.20% 14.00% 9.67%
0.25% 1.55% 1.17% 0.95% 0.75% 2.09% 0.77% 0.00% 1.06% 0.46% 1.56% 0.52% 2.58% 2.97% 2.38% 1.78% 2.61%
0.25% 0.52% 0.39% 0.95% 0.38% 1.05% 1.03% 2.12% 1.21% 0.61% 0.52% 1.24% 2.10% 3.29% 1.19% 1.33% 3.09%
0.76% 0.52% 0.78% 0.88% 0.00% 1.05% 0.96% 1.06% 1.44% 0.46% 1.56% 1.56% 1.64% 3.20% 1.66% 1.11% 2.72%
1.52% 2.59% 0.39% 1.32% 0.75% 1.05% 1.09% 0.53% 1.13% 0.61% 0.00% 0.93% 2.13% 3.47% 1.66% 1.33% 2.98%
0.00% 2.07% 0.91% 1.17% 1.13% 0.45% 0.96% 1.06% 1.06% 0.61% 0.52% 1.24% 2.03% 2.90% 1.19% 1.56% 2.85%
3.30% 2.59% 4.03% 4.40% 3.76% 4.48% 5.39% 5.29% 5.82% 3.50% 4.69% 4.25% 7.30% 11.58% 5.70% 9.56% 10.55%
6.09% 7.25% 5.46% 8.29% 6.02% 7.32% 7.70% 7.41% 7.78% 6.39% 5.21% 7.99% 9.33% 11.56% 9.98% 11.56% 11.58%
6.85% 3.63% 5.20% 6.09% 5.64% 4.78% 7.25% 4.23% 6.34% 6.09% 4.69% 4.88% 6.18% 4.44% 7.36% 11.33% 5.33%
4.57% 6.22% 4.94% 5.14% 3.76% 5.23% 5.39% 8.99% 6.34% 4.26% 2.60% 4.15% 3.77% 2.02% 5.23% 6.89% 2.92%
5.33% 6.74% 4.42% 5.21% 5.26% 4.78% 4.56% 5.82% 3.25% 5.18% 3.65% 2.90% 3.25% 1.43% 4.04% 6.44% 2.10%
4.57% 1.55% 3.77% 4.33% 3.38% 2.09% 4.43% 4.23% 4.08% 2.89% 2.08% 3.11% 2.06% 0.95% 1.66% 4.22% 1.14%
3.55% 3.11% 3.25% 3.23% 4.14% 3.44% 3.15% 3.17% 2.87% 2.74% 4.17% 2.18% 1.75% 0.82% 0.48% 3.11% 0.79%
5.84% 0.00% 3.64% 3.15% 2.26% 2.84% 2.44% 1.06% 2.79% 2.89% 2.60% 2.39% 1.68% 0.52% 2.14% 1.56% 0.63%
4.31% 3.63% 2.21% 2.49% 4.14% 1.64% 1.93% 1.06% 1.66% 1.98% 3.13% 1.45% 1.33% 0.20% 1.19% 1.33% 0.26%
2.54% 1.04% 2.47% 2.49% 2.63% 0.90% 2.31% 1.59% 1.13% 1.83% 2.60% 1.97% 0.91% 0.29% 0.95% 0.67% 0.37%
1.27% 1.55% 2.21% 2.05% 2.26% 1.35% 2.44% 1.59% 2.04% 2.44% 3.65% 1.14% 0.87% 0.34% 0.95% 0.67% 0.31%
0.51% 0.52% 1.69% 1.47% 1.88% 0.60% 1.80% 1.06% 1.59% 1.98% 1.56% 1.45% 0.84% 0.29% 0.48% 0.22% 0.31%
0.76% 0.00% 1.17% 1.17% 2.63% 0.75% 1.35% 2.65% 0.98% 1.37% 1.56% 1.45% 0.59% 0.16% 0.24% 0.67% 0.20%
0.51% 0.52% 1.43% 1.17% 2.26% 1.20% 0.64% 1.59% 0.53% 1.52% 1.56% 1.87% 0.49% 0.11% 0.48% 0.44% 0.11%
0.76% 2.07% 1.30% 0.81% 3.01% 1.05% 0.58% 0.00% 0.91% 1.07% 1.56% 1.66% 0.56% 0.20% 0.24% 0.22% 0.22%
1.27% 0.52% 0.78% 0.73% 1.50% 1.05% 1.03% 1.06% 0.38% 0.91% 0.00% 0.41% 0.73% 0.18% 0.00% 0.22% 0.13%
1.02% 0.52% 0.78% 1.03% 0.75% 0.75% 0.58% 1.59% 0.68% 0.61% 0.52% 0.93% 0.49% 0.09% 0.00% 0.22% 0.07%
0.00% 1.04% 1.43% 0.51% 0.00% 0.75% 0.71% 0.00% 0.23% 0.91% 0.52% 0.52% 0.28% 0.02% 0.24% 0.00% 0.07%
0.25% 0.52% 0.00% 0.07% 1.13% 0.60% 0.45% 0.53% 0.30% 0.91% 2.60% 0.31% 0.38% 0.09% 0.24% 0.22% 0.09%
0.51% 1.04% 0.52% 0.15% 1.88% 0.75% 0.32% 0.53% 0.15% 0.61% 0.00% 0.52% 0.31% 0.09% 0.00% 0.22% 0.13%
4.06% 6.74% 7.41% 2.79% 8.65% 6.43% 3.66% 5.82% 1.44% 5.63% 12.50% 4.15% 2.17% 1.38% 0.95% 1.11% 1.18%

Proportion of Suppliers Gaining/Losing by This Amount
Gain Up To AAP COM CON DEB EDU EMP HOU MED MSC PI PUB WB PUBLIC PRIVATE IMMIGRATION ASYLUM OVERALL
300% 235 104 457 829 180 375 959 115 752 366 114 519 1,578 2,289 211 305 2,837
250% 231 101 446 825 171 360 944 113 748 357 109 514 1,561 2,281 211 303 2,831
200% 223 99 418 808 163 348 923 110 738 347 102 492 1,534 2,260 209 301 2,805
150% 211 92 391 774 148 322 874 103 715 321 95 466 1,471 2,239 207 297 2,778
100% 196 83 331 683 117 289 769 90 635 266 76 393 1,375 2,190 197 287 2,715
90% 186 81 312 649 110 283 733 87 620 254 71 374 1,349 2,177 193 284 2,695
80% 169 74 295 615 99 272 703 85 598 241 65 360 1,311 2,168 188 278 2,681
70% 146 74 267 572 93 253 665 83 561 222 60 337 1,263 2,145 179 271 2,647
60% 132 68 242 528 82 230 616 77 523 204 52 316 1,213 2,109 177 257 2,604
50% 114 65 213 469 73 216 547 69 469 185 48 286 1,154 2,067 170 238 2,542
40% 93 52 179 398 59 184 476 58 426 151 41 258 1,061 2,004 153 209 2,428
30% 75 40 141 328 49 149 392 41 342 123 36 218 953 1,915 131 178 2,269
27% 69 37 135 306 43 141 362 40 320 110 33 207 901 1,868 122 159 2,187
24% 61 37 120 279 38 129 325 38 296 99 29 194 856 1,810 112 151 2,126
21% 49 33 105 252 35 119 292 35 263 87 27 178 804 1,750 103 134 2,025
18% 45 30 94 231 31 109 243 30 230 79 25 154 729 1,661 91 110 1,885
15% 42 28 83 187 28 93 209 27 207 66 18 132 654 1,524 75 95 1,715
12% 29 23 72 156 22 84 181 24 175 51 17 111 567 1,360 64 83 1,511
9% 22 19 50 118 17 60 146 18 135 36 16 84 472 1,127 55 66 1,255
6% 14 17 33 82 11 42 94 10 93 20 10 63 339 809 42 48 894
3% 5 5 18 38 3 28 43 6 49 10 7 32 181 417 22 19 458

Proportion of Suppliers Gaining/Losing by This Amount
AAP COM CON DEB EDU EMP HOU MED MSC PI PUB WB PUBLIC PRIVATE IMMIGR ASYL OVERALL
39.34% 38.86% 35.89% 36.61% 26.69% 39.16% 35.88% 34.92% 39.50% 39.73% 31.77% 43.26% 42.82% 42.62% 38.95% 23.56% 41.18%
39.09% 38.86% 35.89% 36.61% 26.69% 39.16% 35.88% 34.92% 39.50% 39.73% 31.77% 43.26% 42.82% 42.60% 38.72% 23.11% 41.05%
37.31% 38.86% 35.89% 36.61% 26.69% 39.16% 35.88% 34.92% 39.50% 39.73% 31.77% 43.15% 42.82% 42.53% 38.48% 22.22% 40.68%
36.80% 38.86% 35.89% 36.46% 26.69% 39.16% 35.75% 34.92% 39.50% 39.73% 31.77% 43.15% 42.79% 42.46% 37.77% 22.00% 40.51%
35.79% 38.86% 35.89% 36.39% 26.69% 39.16% 35.75% 34.92% 39.50% 39.73% 31.77% 43.15% 42.75% 42.29% 37.29% 22.00% 40.06%
34.52% 38.34% 35.89% 36.17% 26.32% 39.01% 35.62% 34.92% 39.50% 39.73% 31.77% 42.43% 42.44% 41.39% 36.82% 21.56% 38.81%
33.25% 37.82% 35.89% 35.80% 25.94% 38.86% 34.98% 34.92% 39.50% 39.73% 31.77% 42.01% 41.88% 40.33% 36.34% 21.33% 37.06%
32.49% 37.82% 35.89% 34.63% 25.94% 38.71% 34.15% 34.92% 39.50% 39.57% 31.77% 40.46% 40.83% 37.83% 34.68% 19.78% 33.58%
31.98% 36.79% 35.89% 34.04% 25.94% 38.42% 33.50% 34.92% 39.50% 39.57% 31.77% 39.83% 40.31% 36.86% 34.44% 19.56% 32.57%
31.47% 36.79% 35.89% 33.38% 25.94% 38.42% 33.06% 34.39% 39.50% 39.57% 31.77% 39.21% 39.68% 35.81% 33.97% 18.67% 31.49%
30.71% 36.79% 35.89% 33.02% 25.94% 38.12% 32.67% 34.39% 39.50% 39.57% 31.77% 37.97% 39.08% 34.27% 33.02% 17.78% 30.20%
29.44% 36.79% 35.76% 32.28% 25.56% 38.12% 31.84% 33.86% 39.50% 39.57% 31.25% 36.51% 37.90% 32.64% 32.30% 17.56% 28.13%
29.19% 35.75% 35.63% 31.18% 25.19% 37.97% 30.68% 33.86% 39.50% 39.57% 30.73% 33.92% 36.47% 30.38% 31.35% 16.00% 26.08%
28.43% 34.72% 35.50% 30.01% 25.19% 37.37% 29.46% 33.33% 39.50% 39.42% 30.73% 31.64% 34.72% 27.22% 30.40% 14.89% 23.66%
26.40% 34.72% 35.50% 28.98% 24.81% 36.17% 27.98% 31.75% 39.43% 39.27% 29.69% 29.77% 31.30% 23.88% 28.03% 14.00% 20.51%
24.37% 34.20% 35.11% 27.66% 23.68% 34.38% 25.99% 29.63% 39.35% 38.66% 28.13% 26.97% 26.16% 18.17% 24.94% 12.67% 15.72%
14.72% 30.57% 34.46% 26.19% 21.80% 30.19% 23.11% 24.34% 38.82% 36.07% 26.04% 22.93% 18.90% 11.23% 19.95% 7.78% 9.06%
8.63% 26.42% 31.73% 23.84% 18.05% 25.41% 20.22% 16.40% 37.39% 32.72% 23.44% 19.50% 13.27% 6.68% 14.25% 4.22% 5.15%

Proportion of Suppliers Gaining/Losing by This Amount
AAP COM CON DEB EDU EMP HOU MED MSC PI PUB WB PUBLIC PRIVATE IMMIGR ASYL OVERALL
60.66% 58.03% 61.77% 62.07% 69.92% 58.45% 62.84% 64.02% 57.18% 58.45% 65.63% 55.19% 55.75% 51.16% 50.59% 67.78% 52.83%
60.15% 58.03% 61.77% 62.00% 69.92% 58.45% 62.71% 64.02% 57.18% 58.45% 65.63% 54.98% 55.75% 51.16% 50.59% 66.89% 52.48%
58.63% 58.03% 61.77% 61.78% 69.92% 58.45% 62.45% 64.02% 57.18% 58.45% 65.63% 54.25% 55.64% 51.12% 50.36% 64.89% 51.60%
58.63% 58.03% 61.77% 61.41% 69.92% 58.45% 62.20% 64.02% 57.18% 58.45% 65.63% 53.84% 55.57% 51.05% 50.36% 64.00% 51.07%
58.63% 58.03% 61.77% 60.82% 69.92% 58.45% 61.55% 64.02% 57.18% 58.45% 65.63% 53.11% 55.40% 50.88% 50.36% 61.33% 49.72%
57.87% 57.51% 61.77% 60.16% 69.92% 58.30% 60.65% 64.02% 57.18% 58.45% 65.63% 51.56% 54.87% 50.11% 50.36% 55.33% 46.93%
56.60% 56.48% 61.77% 59.57% 69.92% 58.00% 59.50% 64.02% 57.18% 58.45% 65.63% 50.31% 53.30% 48.68% 49.64% 50.00% 44.49%
55.33% 55.96% 61.64% 57.89% 69.17% 57.25% 58.22% 64.02% 57.18% 58.30% 65.63% 49.07% 50.05% 45.74% 47.98% 44.89% 39.69%
54.31% 55.44% 61.64% 57.37% 69.17% 57.25% 57.70% 64.02% 57.18% 58.30% 65.63% 48.65% 49.39% 44.77% 47.51% 42.44% 38.46%
53.55% 54.92% 61.51% 57.08% 68.80% 56.65% 57.45% 64.02% 57.18% 58.30% 65.63% 48.03% 48.52% 43.45% 46.79% 39.78% 36.80%
53.30% 54.92% 61.51% 56.42% 68.42% 56.50% 57.00% 64.02% 57.18% 58.30% 65.10% 46.99% 47.36% 41.56% 46.32% 37.33% 35.04%
51.78% 52.85% 61.51% 55.25% 68.05% 56.05% 56.42% 62.96% 57.18% 58.30% 64.58% 46.16% 45.44% 39.32% 44.18% 34.89% 32.81%
51.27% 52.33% 61.51% 54.22% 67.67% 55.61% 55.01% 62.43% 57.18% 58.14% 64.06% 45.33% 43.24% 36.36% 41.81% 32.22% 30.07%
48.98% 51.81% 61.51% 52.97% 66.54% 55.16% 53.40% 60.85% 57.18% 57.84% 63.54% 43.26% 40.13% 32.69% 38.95% 30.00% 26.95%
46.70% 50.78% 61.38% 51.58% 64.66% 53.66% 51.86% 59.26% 57.18% 57.38% 61.46% 41.80% 35.98% 28.43% 37.05% 26.44% 22.83%
40.86% 49.74% 60.99% 50.04% 62.41% 52.32% 49.23% 53.97% 57.10% 56.47% 59.90% 40.25% 28.96% 22.83% 31.59% 21.33% 18.36%
27.41% 44.04% 59.56% 47.25% 59.40% 48.13% 44.99% 46.03% 55.82% 53.73% 57.29% 36.93% 19.94% 13.86% 23.04% 12.22% 11.10%
8.12% 38.34% 54.36% 42.41% 58.65% 43.65% 38.77% 35.45% 52.27% 48.40% 53.65% 33.20% 15.54% 7.27% 14.49% 6.22% 5.83%

  The figures show how income would have changed if, in 2005-06 suppliers had taken on exactly the same cases, behaved in exactly the same way on each case and been paid the fixed fees for every case.

  It is only possible to base this assessment on historical data. But in summary, the figures need to be treated with caution for the following reasons:

  In reality, suppliers will behave in different ways under fixed fees (see below) so that many of those who would theoretically lose financially will not in practice lose at all.

  Secondly and crucially—no supplier will move in a "big bang" way to fixed fees. The scenario on which the impact assessment is based (all cases being paid on fixed fees) is in any event several years down the line. This is because the fees will only apply to new cases started after 1 October 2007. The average gap between issue and billing is 630 days in public law children proceedings and for family private it is 326 days for initial advice (Legal Help), 558 days for Family Help (the new level 2 fees in the scheme) and 718 days for cases that go onto to full legal representation. Therefore the impact on firms' actual income after the introduction of the fixed fees will be much less than it might appear in the RIA—because for a considerable period the bulk of their income will be on old cases. So even the highest potential losers may in practice not see any dip in income in the first year after fixed fees—in fact, since the new cases they bill in the first year are likely to be the more straightforward ones (which would have been paid less under the per hour basis) cash income may even go up. This means that is not really accurate to speak of a "short term risk". The cases with the shortest length will be TFF replacement Legal Help cases—with an average time of six months for housing for example but even here impact in the first year will be much less than in the RIA because there will still be many old cases being billed next year and importantly actual cash amounts for "losses" will be low—total national expenditure on solicitors for legal help cases covered by the fees is around £28 million compared to over £570 million for family work. In the TFF replacement categories many firms rely on the income from legal representation rather than initial legal advice.

  In practice how suppliers will actually behave means that the reality is likely to be very different. It is important not to assume that suppliers have no control over the cases they take on and the way that they deal with them. By taking on more cases or a range of cases, by standardising procedures (for example using checklists in interviews as recommended by peer reviewers) firms will adapt to the new system, so it is not safe to say that those who "lose" under the RIA will actually lose any income.

  Where services are paid for on hourly rates, the most efficient practitioner is the one that get their staff to work and claim for more hours per case. This inevitably puts up the costs of cases to the taxpayer. Any provider will know that some members of staff can do the same work more quickly than others and indeed that experienced staff are often quicker. Paying on hourly rates actually penalises those staff as they are able claim less per case. Under a fixed fee regime the efficient way to work is to take on more cases and clients. This helps access, but also rewards more experienced practitioners who can deal with cases more quickly.

  The Committee will no doubt be concerned that providers are given time to make these changes. However, the fact that the fees only apply to new cases after 1 October 2007 means that there will be a considerable transition period as discussed above. It is also important to stress that for civil the fixed fee proposals were first published in July 2006—with the first implementation not until October 2007.

  Finally, the fact that there is more than an even balance of potential winners under each scheme means that if problems do occur, we would expect them to be in a position to expand and take over the extra work.

April 2007





 
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